An observation made by many is that Varun''s PE is high based on trailing PAT. But what appears to be ignored is that Earnings before depreciation is far higher than its PAT. The lower PAT through accelerated depreciation allows for lower tax liability and the earnings can be more fully utilised for debt servicing. Of the about 2100 crore of debt on its books 600 crore is interest free. Another 540 crore will be cleared from IPO proceeds.That leaves only about 1000 crores. Assuming the EBITDA remains constant at about 600 crores, balance debt can be cleared in just 2 years if company does not take any additional debt. With no more interest costs, the earnings directly add to the PAT. And if the company is done with depreciating its assets/ plants against EBITDA, Varun''s PAT should easily be 4-6 times the current number. Considering the above and considering the assured business, high CAGR, client profile and growth potential of this industry, prospects seem very bright.
I don''t think so.... We can except positive in this scrip because subscription is very less. That to NII is almost not applied which means bulk sales won''t much happen. Seems good. Let''s see.
Hello to all I am new to trading & opened my demat account recently. I have applied for varun bev share online thru icicidirect & also money has been debited from my account but, i am unable to know whether I have been allotted the shares or not. Please help how can i check.
Get ready for bumper listing of Varun beverage tomorrow.. Cheers guys.. Market situations are most favorable.. One may hold it for long term aspects also.. Enjoy the listing gains..
The fear factor is so high in IPOs after ICICIPRU .That is why the listing price is always days low in both ENDURANCE & PNB HOUSING. ENDRANCE moved UP about 100 Rs after listing & PNB is about Rs 40/- after listing. In same way VARUN also it will be moved UP after listing This indicates fear factor. If Greed factor comes the trades will reverse to the above.